Highways: New Shortfall Projected For Trust Fund

The Highway Trust Fund will need an infusion of $5 billion to $7 billion by August to avoid a slowdown in spending, Senate Environment and Public Works Committee Chairman Barbara Boxer (D-Calif.) and the panel’s top Republican, James Inhofe (Okla.), are warning.

Citing Obama administration and Dept. of Transportation estimates, the senators said on June 2 that $8 billion to $10 billion more will be needed in 2010 to maintain the current highway program level, which is $40.7 billion.

To fix the 2009 problem, Inhofe raised the idea of using the interest on the trust-fund balance. Interest is pegged at roughly $750 million a year and now goes to the general fund. Congress rescued the trust fund last year with an $8-billion transfer from the general fund.

Pam Hunter McFarland was a Senior Editor of ENR and her expertise was: Sourcebooks, Environment, Labor

Tom Ichniowski has been writing about the federal government as ENR’s Washington Bureau Chief since the George H.W. Bush administration, and he has covered at least five major highway bills. A recognized expert on government policy on infrastructure and regulation, Tom is also a Baltimore native and Orioles fan who grew up rooting for Brooks and Frank Robinson. He is a graduate of Columbia College and Columbia’s graduate school of journalism, where he once used “unrelentless” in a headline.

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